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Summary of Significant Accounting Standards and Policies (Policies) | 9 Months Ended
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Sep. 30, 2020
Summary of Significant Accounting Policies |
Recently Adopted Accounting Standards and New Accounting Standards | Recently Adopted Accounting Standards ​ ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350) ​ In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU simplifies the subsequent measurement of goodwill as this ASU eliminates Step 2 from the goodwill impairment test. Under this ASU, an entity will continue to perform its annual, or interim, goodwill impairment test to determine if the fair value of a reporting unit is greater than its carrying amount. An entity should then recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value using the results of its Step 1 assessment, with the loss recognized not to exceed the total amount of goodwill allocated to that reporting unit. This ASU is effective for annual periods beginning after December 15, 2019, with early adoption permitted. The Company adopted ASU 2017-04 at the beginning of its 2020 fiscal year, and this ASU did not have a material impact on the Company’s Condensed Consolidated Financial Statements upon adoption. ​ ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) ​ In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the Company to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net income. This ASU is effective for annual periods beginning after December 15, 2019, with early adoption permitted. The Company adopted ASU 2016-13 at the beginning of its 2020 fiscal year, and this ASU did not have a material impact on the Company’s Condensed Consolidated Financial Statements upon adoption. ​
Indefinite-lived intangible assets and Goodwill | Indefinite-lived intangible assets and goodwill: The Company has indefinite-lived intangible assets of $178 million at September 30, 2020 and December 31, 2019. Goodwill ($841 million and $801 million at September 30, 2020 and December 31, 2019, respectively) represents the excess of the cost of an acquired entity over the fair value assigned to identifiable assets acquired and liabilities assumed. The following table summarizes the Company’s indefinite-lived intangible assets at the dates presented: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(in millions) | ​ | Balance at September 30, 2020 |  | Balance at December 31, 2019 | ​
Trademarks/tradenames (indefinite-lived) | ​ | $ | 178 |  | $ | 178 | ​
​ The original carrying value of goodwill and accumulated impairment charges by reportable business segment at September 30, 2020 was as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | North | ​ | South | ​ | Asia- | ​ | ​ | ​ | ​ | ​ | ​ | ​
(in millions) |  | America |  | America |  | Pacific |  | EMEA |  | Total |
Goodwill before impairment charges | ​ | $ | 608 | ​ | $ | 54 | ​ | $ | 229 | ​ | $ | 65 | ​ | $ | 956 | ​
Accumulated impairment charges | ​ | ​ | (1) | ​ | ​ | (33) | ​ | ​ | (121) | ​ | ​ | — | ​ | ​ | (155) | ​
Balance at January 1, 2020 | ​ | ​ | 607 | ​ | ​ | 21 | ​ | ​ | 108 | ​ | ​ | 65 | ​ | ​ | 801 | ​
Acquisitions | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 48 | ​ | ​ | — | ​ | ​ | 48 | ​
Currency translation | ​ | ​ | — | ​ | ​ | (6) | ​ | ​ | (3) | ​ | ​ | 1 | ​ | ​ | (8) | ​
Balance at September 30, 2020 | ​ | $ | 607 | ​ | $ | 15 | ​ | $ | 153 | ​ | $ | 66 | ​ | $ | 841 | ​
​ The Company assesses indefinite-lived intangible assets and goodwill for impairment annually (or more frequently if impairment indicators arise). The Company performs this annual impairment assessment as of July 1 each year. In testing indefinite-lived intangible assets for impairment, the Company first assesses qualitative factors to determine whether it is more-likely-than-not that the fair value of an indefinite-lived intangible asset is less than its carrying value. After assessing the qualitative factors, if the Company determines that it is more-likely-than-not that the fair value of an indefinite-lived intangible asset is greater than its carrying amount, then it would not be required to compute the fair value of the indefinite-lived intangible asset. In the event the qualitative assessment leads the Company to conclude otherwise, then it would be required to determine the fair value of the indefinite-lived intangible assets and perform a quantitative impairment test in accordance with Accounting Standards Codification (“ASC”) subtopic 350-30. In performing the qualitative analysis, the Company considers various factors including net sales derived from these intangibles and certain market and industry conditions. Based on the results of its assessment, the Company concluded that as of July 1, 2020, there were no impairments in its indefinite-lived intangible assets. ​ In testing goodwill for impairment, the Company first assesses qualitative factors in determining whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. After assessing the qualitative factors, if the Company determines that it is more-likely-than-not that the fair value of a reporting unit is greater than its carrying amount, then the Company does not perform an impairment test. If the Company concludes otherwise, then it performs an impairment test as described in ASC subtopic 350-30. This test compares the fair value of the reporting unit to its carrying value. If the fair value of the reporting unit exceeds the carrying value of its net assets, goodwill is not considered impaired and no further testing is required. If the carrying value of the net assets exceeds the fair value of the reporting unit, an impairment is recorded. Based on the results of the annual assessment, the Company concluded that as of July 1, 2020, there were no impairments in its reporting units. ​
Net Sales Presentation Change | Net Sales Presentation Change ​ During the three months ended December 31, 2019, the Company changed its presentation of shipping and handling costs. These expenses were previously included as a reduction to Net sales in the Condensed Consolidated Statements of Income. The Company is now presenting these expenses within Cost of sales in the Condensed Consolidated Statements of Income. The change in presentation was applied retrospectively to all periods presented in the Condensed Consolidated Statements of Income. The change in presentation had no effect on Gross profit, Operating income, Net income, or Earnings per share. The Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Comprehensive Income, Condensed Consolidated Statements of Equity and Redeemable Equity, and Condensed Consolidated Statements of Cash Flows are not affected by this change in presentation. ​ The effect of the adjustment is as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended September 30, 2019 | ​ | Nine Months Ended September 30, 2019 | ​
(in millions) | ​ | As Reported | ​ | As Adjusted | ​ | As Reported | ​ | As Adjusted | ​
Consolidated Statements of Income: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net sales before shipping and handling costs | ​ | $ | 1,574 | ​ | $ | — | ​ | $ | 4,660 | ​ | $ | — | ​
Less: shipping and handling costs | ​ | ​ | 117 | ​ | ​ | — | ​ | ​ | 349 | ​ | ​ | — | ​
Net sales | ​ | ​ | 1,457 | ​ | ​ | 1,574 | ​ | ​ | 4,311 | ​ | ​ | 4,660 | ​
Cost of sales | ​ | ​ | 1,113 | ​ | ​ | 1,230 | ​ | ​ | 3,322 | ​ | ​ | 3,671 | ​
Gross profit | ​ | $ | 344 | ​ | $ | 344 | ​ | $ | 989 | ​ | $ | 989 | ​
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended September 30, 2019 | ​ | Nine Months Ended September 30, 2019 | ​
(in millions) | ​ | As Reported | ​ | As Adjusted | ​ | As Reported | ​ | As Adjusted | ​
Net sales to unaffiliated customers: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
North America | ​ | $ | 892 | ​ | $ | 984 | ​ | $ | 2,637 | ​ | $ | 2,912 | ​
South America | ​ | ​ | 234 | ​ | ​ | 245 | ​ | ​ | 667 | ​ | ​ | 699 | ​
Asia-Pacific | ​ | ​ | 196 | ​ | ​ | 205 | ​ | ​ | 585 | ​ | ​ | 611 | ​
EMEA | ​ | ​ | 135 | ​ | ​ | 140 | ​ | ​ | 422 | ​ | ​ | 438 | ​
Total | ​ | $ | 1,457 | ​ | $ | 1,574 | ​ | $ | 4,311 | ​ | $ | 4,660 | ​

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